Retailer Ally Fashion has been ordered into liquidation after an application by a landlord for outstanding rent.

Founded in 2001, the company expanded its national footprint to 160 stores. Now, 51 stores will close immediately, resulting in the loss of 250 jobs. Staff members of the 109 remaining stores will continue to work in the “short term”.

The Federal Court of Australia appointed Jeff Marsden and Duncan Clubb of BDO Australia as liquidators on February 28.

“Ally Fashion is a well-known Australian brand, with a dedicated team,” said Marsden.

“The closure of underperforming stores and entering into a Licence Agreement will allow the business to continue operating in the short term while we urgently explore options to restructure, recapitalise or sell the business.”

The licensing agreement is with a related entity of Ally Fashion director David Dai.

Of the stores to be closed immediately, 19 are in Queensland, 11 in NSW, eight in Victoria, seven in SA and six in WA.